The Westin Lighter Quay hotel on Auckland's waterfront is to continue operating, even though its management company is now in the hands of receivers.
Michael Stiassny and Brendon Gibson of KordaMentha have been appointed as receivers of Lighter Quay Management, which runs the Westin Hotel complex. Investors own hotel rooms and lease them to the company and there are also residents.
The $130 million five-star hotel was developed by businessman Nigel McKenna.
The receivership is the result of failed talks between Lighter Quay Hotel Management and its creditors, KordaMentha said in a statement.
A scheme of arrangement to keep the hotel running was rejected by creditors on June 24.
As a result an interim liquidator was appointed, so a secured creditor, which KordMentha did not name, appointed receivers to protect its interests.
"Since opening in 2007 to much acclaim, the Westin Hotel has remained popular with locals as well as other domestic and international guests. It is fully booked for the Rugby World Cup next year," Mr Stiassny said.
"We want to reassure investors, the hotel operator, staff, suppliers and guests to the Westin Lighter Quay that it is our intention for the hotel to continue to operate as usual."
The receivers will meet with both the hotel operator and representatives of the hotel room owners as a priority.
The hotel has 172 rooms and is at 21 Viaduct Harbour Ave.
The creditors' compromise proposal listed 122 creditors demanding an average of about $40,000 each although sums vary widely.
The biggest creditor is Mr McKenna's company Melview Viaduct Harbour, claiming $1.28 million. The Lighter Quay Residents Society is claiming $188,975.89.
